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ARDEN HILLS ECONOMIC DEVELOPMENT AUTHORITY - At,JGUST 25, 1997 2 UNFINISHED AND NEW BUSINESS Creation of Revolving Loan Fund Mr. Kevin Ringwald, Executive Director, provided a brief overview of draft guidelines for the creation of a Revolving Loan Fund (RLF). Mr. Ringwald stated that with recent funding received from the Minnesota Department of Trade and Economic Development(D/TED), the City normally receives the first $100,000 of loans for loan initiation, employment verification, and other administrative purposes. The City is scheduled to receive a combined amount of approximately $750,000 in loans for the CPI, Tycom and Manufacturer's Services Ltd. projects. Mr. Ringwald stated that, as those loans are repaid, the City will be acquiring a sizable revolving loan fund, and needs to have established guidelines for re-use of those funds. Upon completion of the City's Revolving Loan Fund guidelines, they will be submitted to D/TED to ensure funding received by the City is used to create additional jobs, is redirected to other businesses, and to monitor other rational and specific criteria for loan recipients. Mr. Ringwald suggested several options the EDA may wish to consider to target these funds as they become available. Mr. Ringwald reviewed three areas that D/TED uses; geography,job creation and/or retention; and how the funds are leveraged. Mr. Ringwald suggested the EDA may wish to consider specific areas within the City to focus monies for future development, suggesting the Gateway Business Development, existing corporate campuses, and future development in the Lexington Avenue - Grey Fox Road, and . TCAAP areas. As the EDA considers job creation and retention, Mr. Ringwald suggested they may wish to consider using the guidelines developed by D/TED, using a specific funding amount depending on the number and category of jobs created and/or retained. When considering how funds are to be leveraged, Mr. Ringwald suggested the EDA may wish to provide suggested limits or specific application procedures in the Revolving Loan Fund guidelines to ensure applicants are applying for funding from sources other than just specifically City funds. Mr. Ringwald stated Staff has prepared guidelines and philosophies for the EDA to discuss and provide feedback on. He stated it would be in City's best interest to have these guideline in a final format soon, to begin the process of the CPI and Tycom Ioans. President Probst inquired regarding other City's guidelines in this type of situation. Mr. Ringwald stated Arden Hills is more conservative compared to other cities in this respect, and offered one specific area in which our RLF guidelines differ was in the number of existing corporate campuses. Mr. Ringwald stated that many cities, in their business development efforts, provide a"but for" philosophy, stating that without this funding, the business would not locate in the city or continue to operate.